The Application Of Economic Analysis Of Law In Tort Liability And Compensation

This paper studies the application of the method of economic analysis in two aspects:the establishment of tort liability and the determination of the amount of damages.There are a lot of problems about the two elements of fault and causation in the traditional tort law.There are many problems in the traditional tort theory,such as the standard is not uniform and the subjectivity is strong,which brings great trouble to the related research.In determining the amount of damages on the existence of traditional theory of tort law in personal injury and other difficult to measure value of money on the amount of damages to determine the damage type unconvincing,determined standard is difficult to grasp the problem.On the issue of punitive damages,the traditional theory also has the problem of determining the standard of the amount of poor operability.In this paper,with the method of economic analysis,try to establish objective standards,through the prevention level in the society for the prevention of optimal cost and expected accident costs compared to the size of determining whether the parties have fault,through the economic analysis on the causal relationship between the law and economic law of causality analysis from the perspective of fault can be transformed into the discussion to further simplify the judgment standard of the establishment of liability.In determining the amount of damages on the issue of economic analysis for compensatory damages and punitive damages apply different method of determining the amount,the equivalent curve,equivalent risk and performance errors the concept of personal injury can not be measured by money loss results and determine the amount of punitive damages are more reasonable standard,at the same time are given to determine operability and relatively accurate method to have the market price of the compensation amount,constructive significance to solve difficult problems of tort liability form and the amount of damages to determine the.In addition to the introduction and conclusion,this paper is divided into four parts:the first part mainly introduces the method of economic analysis as the research method of this paper.From the historical development,theoretical assumptions,the concept of efficiency,to demonstrate the mechanism of the economic analysis of the operation of the mechanism,as well as the choice of the significance of this research methods.The second part mainly introduces the application of the method of economic analysis of law in the establishment of tort liability,which is based on the two elements of fault and causality.This paper analyzes the fault elements in the formula as the starting point,introduces the Learned Hand Formula content,has carried on the further analysis,and introduces the social optimum in the hand formula based on the improvement to the level of prevention theory,through the prevention level in the social optimum when compared to determine the parties investment cost and accident prevention the expected cost of the fault is established.The economic analysis of causation mainly introduces the different understanding of causality in economic analysis.Finally,introduces the method of economic analysis from the perspective of understanding of the causal relationship to the fault transformation,economic analysis research on causality can be transformed into fault research,is conducive to further simplify the establishment of tort liability judgment standard.The third part mainly introduces the application of the method of economic analysis in determining the amount of damages.The method of economic analysis of law is divided into two kinds:compensatory damages and punitive damages.In compensatory damages,there are two kinds of connotations in the economic analysis of law,one is the compensation for the damage caused by the market price,and the other is the compensation for the damage caused by the failure of the market price.The method of economic analysis uses the equivalence of economics to determine the amount of the former with the demand curve function,and uses the equal risk theory to confirm the amount of the latter.For punitive damages,the legal economic analysis is mainly concerned with the impact of the implementation of the error,from the quantification of the implementation of the error to determine the amount of punitive damages.The fourth part discusses the economic analysis method was established in the tort liability and the amount of damages to determine the application limitations,this limitation is mainly due to the economic analysis of the possible conflict of law and justice and other values and support economic analysis practice caused by the lack of data support.However,this limitation is not insurmountable,and through human correction can alleviate the conflict between the economic analysis of law and the concept of fairness and justice.This paper argues that the method of economic analysis method is applied to the establishment of tort liability and damage to determine the amount of compensation,can build a quantitative operation of the tort liability relative objective,accurate determination of the amount of damages and the establishment of the standard,have a positive significance of the research and practice of tort law system.